Taylor Wimpey, the house builder, has sold its US and Canadian businesses for
$955m (£595m) as it seeks to cut debt and buy land for development in
Britain.

The North American business has been sold to a property investment group backed by private equity firms TPG and Oaktree Capital, along with JH investments.

The deal "is a significant step towards our goal of becoming a UK focused homebuilder", said Pete Redfern, chief executive. "The sale will provide us with a strengthened balance sheet and increased financial capacity to invest in the UK."

As of January, Taylor Wimpey had net debt of £660m and the company reported narrower losses in 2010, recovering from a £700m loss in 2009.

Mr Redfern said the sale of the North American business had been a competitive process, and the company has been in talks with a number of interested parties since at least January.

Taylor Wimpey has endured mixed fortunes in North America because of the housing crash. However the company said earlier this year sales have been "very strong" in Canada, and are improving in the US thanks to "excellent" affordability levels and robust consumer confidence.